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Consider The Following Scenario

1. Mr. Javed owns a mango shop but wants to move online due to rising rent costs and limited storage space. He hires you to analyze setting up an online mango shop system. 2. You provide Mr. Javed a sample system request document outlining the business need, requirements, and constraints for an online mango shop system. 3. Considering the scenario, Mr. Javed now needs a 5-year cost-benefit analysis for the new online shop system. You provide a sample analysis projecting development costs, operational costs, estimated increases in sales and reductions in costs, and the net present value and return on investment over 5 years.

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kaosar alam
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59 views2 pages

Consider The Following Scenario

1. Mr. Javed owns a mango shop but wants to move online due to rising rent costs and limited storage space. He hires you to analyze setting up an online mango shop system. 2. You provide Mr. Javed a sample system request document outlining the business need, requirements, and constraints for an online mango shop system. 3. Considering the scenario, Mr. Javed now needs a 5-year cost-benefit analysis for the new online shop system. You provide a sample analysis projecting development costs, operational costs, estimated increases in sales and reductions in costs, and the net present value and return on investment over 5 years.

Uploaded by

kaosar alam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Consider the following scenario

1. Mr. Javed is a business man, selling mangos in a local shop. He is a popular face inside
the town. Recently the shop rent raised high. Also because of his small warehouse he
cannot stock the sufficient number of mangos. He wants to get rid of the shop and
invest for online shop. He hires you to analyze the feasibility of this move. Now your
task is to create a System Request for the new Information System required for Mr.
Javed.

Example Answer

System Request for Online Mango Shop


Project Sponsor Mr. Javed
Business Need - Moving to online from offline
- Get rid of physical shop costs
- Reaching more customers
- Manage inventory more efficiently
- Getting customer feedback

Business - User should be able to login/register


Requirements - User should be able to order mangos with/without login
- User should be able to request mangos in advance
- User should be able to pay online or cash in delivery
- Manager should be able to add/edit/remove mangos
- Manger should be able to view/accept/modify orders
- Manager should be able to see the mango requests

Business Values - Increase of sale 500,000


- Reduced shop rent 240,000
- On side advertise 30,000
- Customer ease of buying
Special Mango season is coming in 3 months, the website needs to be ready
Constraints before the 15th of April
2. Considering the above scenario, now Mr. Javed needs to develop the cost value
analysis for the new IS project. He wants at least 5 years economic analysis

Example Answer
Year 2020 2021 2022 2023 2024 Total

Development Server 100000.00


Application
development team
salary 500000.00
Software license 50000.00
Printer 10000.00

Total Dev cost 660000.00 0.00 0.00 0.00 0.00

Hosting server 8000.00 8000.00 8000.00 8000.00 8000.00


Domain name server 8000.00 8000.00 8000.00 10000.00 10000.00
Maintenances 24000.00 24000.00 24000.00 30000.00 30000.00
Marketing 15000.00 12000.00 8000.00 8000.00 8000.00
Delivery man salary 20000.00 22000.00 25000.00 28000.00 32000.00
Payment gateway 5000.00 5000.00 5000.00 5000.00 5000.00

Total Operational cost 80000.00 79000.00 78000.00 89000.00 93000.00


Profit rate 10%
Total costs 740000.00 79000.00 78000.00 89000.00 93000.00
PV of Total Costs 672727.27 65289.26 58602.55 60788.20 57745.68 915152.96
PV of all Costs 672727.27 738016.53 796619.08 857407.28 915152.96

Increase in sell 200000.00 250000.00 300000.00 360000.00 440000.00


Reduced shop rent 120000.00 120000.00 120000.00 120000.00 120000.00
On site add 0.00 500.00 2500.00 8000.00 15000.00

Total beenefit 320000.00 370500.00 422500.00 488000.00 575000.00


PV of total benefits 290909.09 306198.35 317430.50 333310.57 357029.76 1604878.27
PV of all Benefits 290909.09 597107.44 914537.94 1247848.51 1604878.27

Yearly Profit (Benefit -


cost) (420000.00) 291500.00 344500.00 399000.00 482000.00
Yearly NPV (381818.18) 240909.09 258827.95 272522.37 299284.08 689725.30
Cumulative NPV (381818.18) (140909.09) 117918.86 390441.23 689725.30

ROI 44% 75%


BEP 2.54

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